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Chapter 13 - Marketing: Helping Buyers Buy
1. Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have a value for customers, clients, partners, and
society at large.
2. The activities of marketers depend on what needs to be done to satisfy consumer wants
and needs, in other words, helping the buyer buy.
3. In the evolution of marketing, the production era assumed an unlimited market.
4. The four eras of the evolution of marketing are (1) production, (2) selling, (3) advertising,
and (4) stakeholder relationships.
5. The focus of the production era was on distribution and advertising.
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6. The tremendous demand for consumer goods and services after World War II helped
launch the production era of marketing.
7. In the production era the greatest marketing need was for distribution and storage.
8. During the selling era, businesses turned from an emphasis on production to an emphasis
on selling.
9. The marketing concept has three parts: (1) a consumer orientation, (2) a service
orientation, and (3) an advertising orientation.
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10. In the evolution of marketing, the marketing concept era emphasized selling and
advertising in an effort to persuade consumers to buy existing products.
11. The marketing concept emphasizes that everyone from the president of the firm to the
delivery people should be customer oriented.
12. The marketing concept was used heavily by business when it was first suggested in the
1950s.
13. Customer relationship management (CRM) is the process of learning as much as possible
about customers and doing everything you can to satisfy them.
14.
Chapter 13 - Marketing: Helping Buyers Buy
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The idea behind customer relationship management is to enhance customer satisfaction
and stimulate long-term customer loyalty.
15. Because the marketing concept emphasizes a profit orientation, marketing has not been
used successfully by nonprofit organizations.
16. The primary focus of marketing today is on selling and advertising.
17. During the early 1900s, businesses emphasized learning as much as possible about their
customers and doing everything to satisfy them.
18.
Chapter 13 - Marketing: Helping Buyers Buy
Outstanding service after the sale was a primary focus of businesses during the selling
era.
19. After World War II, the tremendous demand for goods and services among the returning
veterans allowed businesses to sell whatever they produced without having to worry about
what the competition was doing.
Feedback: Competition for the consumer's dollar was fierce after World War II. This
competition forced businesses to be more responsive to consumers, leading to the emergence
of the marketing concept.
20. It is the job of marketers today to persuade consumers to buy the goods and services those
marketers have available to sell.
Feedback: Although marketers in the 1920s might agree with this statement, marketing today
is about learning as much as possible about customers and then exceeding their expectations
and helping them buy.
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21. The marketing efforts at Rotary Enterprises place a great deal of emphasis on marketing
goods that will earn the firm a profit. This focus on profit orientation shows that Rotary's
has not yet adopted the marketing concept that emphasizes a customer orientation rather
than a profit orientation.
Feedback: The marketing concept has three parts: a customer orientation, a service
orientation, and a profit orientation. The customer orientation and profit orientation
components are not mutually exclusive, since firms are unlikely to earn a profit unless they
are responsive to the needs of their customers.
22. Sales representatives at the HomeWork Helper Appliances Store work hard to develop a
close relationship with their customers and to provide satisfaction even after the sale.
These efforts by HomeWork Helper's sales personnel are part of the marketing process.
Feedback: Today, marketing has adopted the concept of customer relationship management.
This concept calls for learning as much about customers as possible and doing everything
possible to satisfy them with goods and services over time.
23.
Chapter 13 - Marketing: Helping Buyers Buy
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Mike's Auto Repair works hard to find out what customers want and how to best meet
their needs. Based on feedback from customers, Mike now provides a written estimate
before any work is done, offers a more comprehensive guarantee than competitors, and
calls customers after servicing their cars to make sure they are satisfied. These efforts
suggest Mike is applying the concepts of customer relationship management.
Feedback: Customer relationship management is a concept that calls for learning as much as
possible about customers and doing what it takes to satisfy and even delight them.
24. The McDonald's Foundation is a nonprofit organization that helps underprivileged
children. As a nonprofit organization, it should avoid performing marketing functions,
since these functions are designed to help organizations earn a profit.
Feedback: Although the marketing concept does emphasize a profit orientation, marketing
functions must be performed by almost all organizations, including those that do not seek a
profit.
25. The main concern of the marketing mix is to please firm's stockholders.
26.
Chapter 13 - Marketing: Helping Buyers Buy
Placing a product in a location where people will buy it is part of the marketing mix.
27. Designing a want-satisfying product is part of the marketing mix.
28. Setting a price for the product or service is one element of the marketing mix.
29. The primary factors involved in the marketing mix are sometimes called the 5 intangibles
of marketing.
30. The marketing manager's job is to design a program that effectively combines the
ingredients of the marketing mix.
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36. Test marketing involves developing an accurate description of the product and asking
people if the proposed product appeals to them.
37. The marketing process includes decisions about the best way to get the product to the
consumer.
38. Setting prices higher than the competition can help create an image of quality.
39. Intermediaries are firms in the middle of a series of organizations that distribute goods
from producers to consumers.
40.
Chapter 13 - Marketing: Helping Buyers Buy
Promotion includes personal selling, publicity, and word-of-mouth efforts to persuade
people to buy a firm's goods or services.
41. Unlike advertising, which is part of the promotional component of the marketing mix,
personal selling is considered to be part of the distribution function.
42. The last step in the marketing process often includes building a continuing relationship
with customers.
43. Marketers are concerned with selling goods and services, and therefore are not involved
in designing the products their firm will sell.
Feedback: One of the four elements of the marketing mix is the design of a want-satisfying
product.
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44. Marketing involves developing and promoting a firm's products and allowing the firm's
purchasing department to make all distribution and transportation decisions.
Feedback: One of the 4 Ps in the marketing mix is "place" which refers to the marketer's role
in distributing goods and services.
45. The most important component of the marketing mix is the actual design and production
of the product.
Feedback: The marketing mix involves decisions about product development, pricing,
distribution, and promotion. However, the actual production process is not part of marketing.
46. Getting the product from the producer to the consumer is a production-related process
and not related to the marketing mix.
Feedback: Distribution is one component in the marketing mix.
47.
Chapter 13 - Marketing: Helping Buyers Buy
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Marketing focuses on the pricing and distribution of want-satisfying products, as well as
determining the best way to promote the products to consumers.
Feedback: Marketing is concerned with product, price, promotion, and distribution. These are
the major components of the marketing mix for the firm.
48. For safety sake, an organization should produce as many products as possible since
customers are not a good source of informing the organization what they want to buy.
Feedback: Customers are very important sources in telling the firm what to produce to meet
their needs.
49. Marketing is a one-time activity, performed when a business is first established and
introducing product in the market. Once a firm has fine-tuned its marketing activities, it
can turn its attention elsewhere.
Feedback: Marketing is an ongoing process. Companies must continually adapt to changes in
consumer wants and needs in order to remain competitive.
50.
Chapter 13 - Marketing: Helping Buyers Buy
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The marketing mix provides a detailed market analysis to determine opportunities and
challenges as well as information needed to make good decisions.
51. Marketing research helps determine what customers have purchased in the past, what
situational changes have occurred to change consumer preferences, and what consumers
are likely to want in the future.
52. Effective marketing research involves listening to customers, employees, shareholders,
and other stakeholders.
53. The first step in the marketing research process is to collect relevant data.
54.
Chapter 13 - Marketing: Helping Buyers Buy
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Secondary data should be gathered first because this type of information is less expensive
to obtain.
55. Secondary data consists of information that has already been compiled by others and is
published in journals and books or made available online.
56. A telephone or online survey is an example of primary data collection.
57. A focus group consists of a small group of people who meet, under the direction of a
discussion leader, to communicate their opinions about an organization, its products, or
other issues.
58.
Chapter 13 - Marketing: Helping Buyers Buy
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Marketers use very detailed surveys to gather secondary data.
59. The final step of the marketing research process involves selecting from several
alternative strategies, and performing follow-up research to see if results were as
expected.
60. Marketing research is a process that most firms complete once a year, in order to gather
information for the firm's budgeting process.
61. In the marketing research process, marketers should examine all the implications of
alternative solutions before making a recommendation.
62.
Chapter 13 - Marketing: Helping Buyers Buy
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Marketing research needs to be an ongoing process at a firm since changes in the
marketplace and among consumers is a continuous process.
63. Government publications, such as the Annual Survey of Manufacturers and Survey of
Current Business, are reliable sources of detailed primary data.
64. The secondary data collected in the research process does not need to be carefully
evaluated since it's always collected from reliable secondary sources.
Feedback: The secondary data collected in the research process might be turned into useful
information. However, since this data has been collected from outside sources and can often
be old, companies must be very careful relying on secondary data.
65.
Chapter 13 - Marketing: Helping Buyers Buy
Because accurate and timely market information is vital to a firm's success, businesses
should budget whatever it takes to get the best data available.
Feedback: Research can be very expensive. The decision about how much to spend obtaining
market information must compare with the need for the additional information against the
costs the firm must incur to obtain that information.
66. Marketing research usually begins with secondary data because it is more accurate and
more relevant than primary data.
Feedback: Marketers often do look at secondary data first, but not because it is more accurate
and relevant. The main advantage of secondary data is that it is already published and is less
expensive than primary data.
67. Whenever available, marketers should rely exclusively on primary data because it is
much more accurate than secondary data.
Feedback: When doing research, marketers must be aware of the trade-off between
information needs and the cost. Marketers can reduce costs by looking for relevant secondary
data before gathering primary data. Since secondary data has already been published, it is
available without the additional effort and expense needed to obtain primary data.
